Please note that in a release published earlier today by MediaMind
Technologies Inc. (Nasdaq:MDMD), please note that Adjusted EBITDA
for the 2011 full year is expected in the range of $22.5 million to
$23.8 million, not "$22.5 million to $22.8 million" as previously
indicated. The corrected release follows:
MediaMind Technologies Inc. (Nasdaq:MDMD), the leading
independent global provider of integrated digital advertising
solutions, today announced its financial results for the first
quarter ended March 31, 2011.
First Quarter Highlights
- Revenues of $18.9 million, up 18% from the prior year period.
Revenue growth is accelerating when compared to the preceding
quarter and is expected to continue and accelerate in 2011 and
2012.
- Non-GAAP net income of $1.6 million, or $0.07 per diluted
share; GAAP net income of $0.6 million, or $0.03 per diluted
share.
- Adjusted EBITDA of $2.3 million.
- Positive operating cash flow of $3.7 million.
- Continued progress on data driven products, organizational
realignment and growth of large advertiser base.
For the 2011 first quarter, revenues increased 18% to $18.9
million compared to $16.0 million in the prior-year period. Revenue
growth was driven by acceleration in the company's data driven
products, new customer wins and higher volumes of ad
impressions. Gross profit margin for the 2011 first quarter
was in line with company expectations at 92% compared to 94% in the
prior year period reflecting planned growth investments in 2011 and
increased revenues from Smart Trading, the Company's new Demand
Side Platform product.
Net income attributable to Common stockholders for the 2011
first quarter was $0.6 million, or diluted earnings per share of
$0.03, compared to $42 thousand, or diluted earnings per share of
$0.00, in the first quarter of 2010.
On a non-GAAP basis, net income for the 2011 first quarter was
$1.6 million, or non-GAAP diluted earnings per share of $0.07,
compared to $0.8 million, or non-GAAP diluted earnings per share of
$0.07, in the first quarter of 2010.
Adjusted EBITDA for the 2011 first quarter was $2.3 million
versus $2.2 million in the prior-year period. See the
reconciliation between GAAP and non-GAAP financial measures
provided in the financial data below.
Cash flow provided by operating activities was $3.7 million in
the first quarter of 2011.
Management Comments and Outlook
"We executed well against top and bottom line plan in the first
quarter and have set the stage for accelerated top-line
growth in 2011 and into 2012," commented Gal Trifon, President
and CEO of MediaMind. "Demand was strong across all regions,
highlighted by a 35% increase in our North American market, with a
124% increase in revenues from our data driven products and a
growing contribution from our larger advertising partners. We
also strengthened our global presence during the period with the
addition of a new data center in China and the acquisition of our
fast-growing distribution partner in Italy. Looking ahead, we
see exciting growth opportunities in social media and mobile
advertising trends and have solidified our plans to enhance our
offering accordingly."
For the 2011 second quarter, MediaMind expects to generate
revenues in the range of $25 to $26 million. Net income is
expected in the range of $1.6 to $2.2 million, or diluted
earnings per share of $0.07 to $0.10. Non-GAAP net income is
expected in the range of $3.1 to $3.6 million, or non-GAAP
diluted earnings per share of $0.14 to $0.17. Adjusted
EBITDA for the 2011 second quarter is expected in the range of $5.0
million to $5.7 million, which reflects a previously anticipated
high level of spend in the Company's outlined growth
initiatives.
The Company is also introducing its full year 2011
outlook. MediaMind expects to generate 2011 revenues in the
range of $99 to $101 million. Net income for the full year is
expected in the range of $9.1 to $10.8 million, or diluted earnings
per share of $0.41 to $0.49. Non-GAAP net income is expected
in the range of $14.0 to $15.6 million, or non-GAAP diluted
earnings per share of $0.63 to $0.70. Adjusted EBITDA for the
2011 full year is expected in the range of $22.5 million to $23.8
million.
"We are providing full year 2011 guidance primarily to offer
more clarity on the anticipated favorable impact of our growth
investments which are expected to drive accelerated revenue growth
and resulting adjusted EBITDA gains in the second half of the
year," commented Sarit Firon, CFO of MediaMind. "We are very
pleased with the performance to date of these growth areas
including data driven products, international expansion including
China, and larger advertisers, and look forward to increasing their
contribution to our overall performance."
Conference Call
The Company will host a conference call today at 4:30 p.m. ET to
discuss its 2011 first quarter results and second quarter
outlook. To access the call, please dial 877-269-7756 (U.S.)
or 201-689-7817 (international) approximately 10 minutes prior to
the start of the call. The teleconference will also be available
via live webcast on the investor relations portion of MediaMind's
website, at http://ir.mediamind.com. If you are unable to
listen to the live teleconference, a replay will be available
through May 14, 2011, and can be accessed by dialing 877-660-6853
(U.S.) or 201-612-7415 (international). Callers will be prompted
for replay account number 379# followed by conference ID number
370712#. An archived version of the webcast will also be available
under the investor relations section of MediaMind's website at
http://ir.mediamind.com.
About MediaMind
MediaMind is a leading global provider of digital advertising
campaign management solutions to advertising agencies and
advertisers. MediaMind provides media and creative agencies,
advertisers and publishers with an integrated platform to manage
campaigns across digital media channels and a variety of formats,
including rich media, in-stream video, display and search.
Headquartered in New York, MediaMind delivered during 2010
campaigns for approximately 9,000 brand advertisers, servicing
approximately 3,800 media agencies and creative agencies across
approximately 8,200 global web publishers in 64 countries
throughout North America, South America, Europe, Asia Pacific,
Africa and the Middle East. For more information on MediaMind,
visit http://www.MediaMind.com
Use of Non-GAAP Financial Measures
We believe that non−GAAP financial measures can provide useful
information to both management and investors by excluding certain
non−cash expenses that are not indicative of our core operating
results. These measures should only be viewed in conjunction with
corresponding GAAP measures.
MediaMind's non−GAAP financial measures exclude the effect of
stock−based compensation and the tax benefit resulting from it. The
reconciliation between GAAP and non−GAAP financial measures is
provided in the financial data below.
Forward-Looking Statements
This press release contains statements that constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical facts are forward-looking statements.
These statements include descriptions regarding the intent, belief
or current expectations of the Company or its officers with respect
to the future consolidated results of operations and financial
condition of the Company, the continued global growth of digital
advertising, and the Company's ability to continue to gain market
share and capitalize on the anticipated global growth of digital
advertising. Such forward-looking statements are not guarantees of
future performance and involve known and unknown risks,
uncertainties, and other factors that may cause actual results,
performance or achievements to be materially different from those
expressed or implied in the forward-looking statements as a result
of various factors and assumptions, including factors discussed
under the heading "Risk Factors" in our final prospectus related to
our initial public offering filed on August 12, 2010, our Annual
Report on form 10K filed on March 8, 2011 and additional reports we
file with the Securities and Exchange Commission.
MEDIAMIND TECHNOLOGIES
INC. |
UNAUDITED GAAP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
(in thousands except share and
per share data) |
|
|
|
|
Three months
ended March 31, |
|
2010 |
2011 |
|
Unaudited |
|
|
|
Revenues |
$16,001 |
$18,878 |
Cost of revenues |
881 |
1,568 |
|
|
|
Gross profit |
15,120 |
17,310 |
|
|
|
Operating expenses: |
|
|
Research and development |
2,261 |
2,952 |
Selling and marketing |
10,048 |
11,565 |
General and administrative |
1,975 |
2,387 |
|
|
|
Total operating expenses |
14,284 |
16,904 |
|
|
|
Operating income: |
836 |
406 |
Financial income, net |
82 |
393 |
|
|
|
Income before taxes on income |
918 |
799 |
Taxes on Income |
358 |
240 |
|
|
|
Net income |
560 |
559 |
|
|
|
Accretion of Preferred stock dividend
preference |
(518) |
- |
|
|
|
Net income attributable to Common
stockholders |
$42 |
$559 |
|
|
|
Net earnings per share: |
|
|
|
|
|
Basic |
$0.00 |
$0.03 |
|
|
|
Diluted |
$0.00 |
$0.03 |
|
|
|
Weighted average number of shares of Common
stock used in computing earnings per share (in thousands): |
|
|
|
|
|
Basic |
8,459 |
18,648 |
|
|
|
Diluted |
11,303 |
21,775 |
|
MEDIAMIND TECHNOLOGIES
INC. |
UNAUDITED GAAP
CONDENSED CONSOLIDATED BALANCE SHEETS |
(in thousands) |
|
|
|
|
|
|
|
December 31,
2010 |
March 31, 2011 |
|
|
Unaudited |
ASSETS |
|
|
|
|
|
CURRENT ASSETS: |
|
|
Cash and cash equivalents |
$21,484 |
$16,538 |
Short-term deposit |
75,873 |
84,621 |
Restricted cash |
1,180 |
1,185 |
Trade receivables, net |
25,604 |
23,270 |
Other accounts receivable and prepaid
expenses |
2,926 |
6,503 |
|
|
|
Total current assets |
127,067 |
132,117 |
|
|
|
LONG-TERM ASSETS: |
|
|
Marketable securities |
2,043 |
2,034 |
Deferred taxes |
2,146 |
567 |
Severance pay fund |
2,267 |
2,530 |
Other long-term assets |
1,092 |
1,136 |
|
|
|
Total long-term assets |
7,548 |
6,267 |
|
|
|
PROPERTY AND EQUIPMENT, NET |
5,014 |
7,066 |
|
|
|
INTANGIBLE ASSETS AND GOODWILL |
- |
1,592 |
|
|
|
Total assets |
$139,629 |
$147,042 |
|
MEDIAMIND TECHNOLOGIES
INC. |
UNAUDITED GAAP
CONDENSED CONSOLIDATED BALANCE SHEETS |
(in thousands) |
|
|
|
|
December 31,
2010 |
March 31,
2011 |
|
|
Unaudited |
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
Trade payables |
$756 |
$1,994 |
Employees and payroll accruals |
3,996 |
5,750 |
Other accounts payable |
5,094 |
3,103 |
|
|
|
Total current liabilities |
9,846 |
10,847 |
|
|
|
LONG-TERM LIABILITIES: |
|
|
Deferred taxes, net |
- |
269 |
Accrued severance pay and other employee
accruals |
3,413 |
3,859 |
Other long term liability |
- |
640 |
|
|
|
Total long-term liabilities |
3,413 |
4,768 |
|
|
|
STOCKHOLDERS' EQUITY |
|
|
Stock capital: |
|
|
Common stock of $ 0.001 par value
-- |
22 |
22 |
Additional paid-in capital |
109,927 |
113,843 |
Treasury stock at cost (3,161,704 shares
of Common stock) |
(23,213) |
(23,213) |
Accumulated other comprehensive gain
(loss) |
(440) |
142 |
Retained earnings |
40,074 |
40,633 |
|
|
|
Total stockholders' equity |
126,370 |
131,427 |
|
|
|
Total liabilities and stockholders'
equity |
$139,629 |
$147,042 |
|
|
|
MEDIAMIND TECHNOLOGIES
INC. |
|
|
UNAUDITED GAAP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW |
|
|
(in thousands) |
|
|
|
|
|
Three months
ended March 31, |
|
2010 |
2011 |
|
Unaudited |
Cash flows from operating
activities: |
|
|
|
|
|
Net income |
$560 |
$559 |
Adjustments to reconcile net income to net
cash provided by operating activities: |
|
|
Depreciation |
384 |
693 |
Compensation related to options
granted to employees |
972 |
1,239 |
Decrease in trade
receivables |
3,500 |
2,782 |
Increase in other accounts
receivable, prepaid expenses |
(327) |
(1,940) |
Decrease (increase) in deferred
taxes |
(382) |
1,263 |
Increase in other long-term
assets |
(72) |
(25) |
Increase (decrease) in trade
accounts payable |
(281) |
819 |
Increase (decrease) in employee
and payroll accruals |
(370) |
1,733 |
Decrease in other
payables |
(257) |
(2,471) |
Increase in accrued severance
pay and other employee accruals, net |
298 |
147 |
Increase in accrued
interest |
(30) |
(151) |
Excess tax benefit from
stock-based compensation |
|
(968) |
Gain on disposal of property
and equipment |
(51) |
- |
|
|
|
Net cash provided by operating
activities |
3,944 |
3,680 |
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
Investments in short-term deposits |
(88) |
(43,140) |
Expiration of short-term deposits |
- |
34,538 |
Acquisition of business activity |
- |
(650) |
Purchase of property and equipment |
(1,188) |
(2,188) |
Proceeds from sale of property and
equipment |
11 |
- |
|
|
|
Net cash used in investing
activities |
(1,265) |
(11,440) |
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
Proceeds from exercise of stock options and
warrants |
207 |
1,708 |
Excess tax benefit from stock-based
compensation |
- |
968 |
|
|
|
Net cash provided by financing
activities |
207 |
2,676 |
|
|
|
Increase (decrease) in cash and cash
equivalents |
2,886 |
(5,084) |
Effects of exchange rate changes on cash and
cash equivalents |
(97) |
138 |
Cash and cash equivalents at the beginning of
the period |
15,363 |
21,484 |
|
|
|
Cash and cash equivalents at the end of the
period |
$18,152 |
$16,538 |
|
MEDIAMIND TECHNOLOGIES
INC. |
UNAUDITED GAAP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW |
(in thousands) |
|
|
|
Three months
ended March 31, |
|
2010 |
2011 |
|
Unaudited |
Supplemental disclosure of cash flow
information: |
|
|
Cash paid during the period for: |
|
|
Income taxes paid |
$1,811 |
$1,481 |
Interest on income tax paid |
$- |
$5 |
Income interest received |
$16 |
$193 |
Non-cash activities: |
|
|
Purchase of property and equipment |
$452 |
$540 |
Acquisition of business activity |
$ - |
$942 |
|
Unaudited
Reconciliation of GAAP Net income to Non-GAAP Net Income and
Non-GAAP Earnings Per Share (Note1) |
(in thousands,
except per share data) |
|
|
Three months
ended March 31, |
Three months
ended June 30, |
Year ended
December 31, |
|
2010 |
2011 |
2011 |
2011 |
2011 |
2011 |
|
|
|
Min |
Max |
Min |
Max |
Net income attributable to Common
stockholders |
$42 |
$560 |
$1,600 |
$2,170 |
$9,100 |
$10,800 |
Stock Based Compensation, net of tax
benefit |
800 |
1,016 |
1,350 |
1,300 |
4,760 |
4,670 |
One time Exit Costs, net of tax
benefit |
- |
- |
160 |
160 |
160 |
160 |
Non−GAAP net income |
$842 |
$1,576 |
$3,110 |
$3,630 |
$14,020 |
$15,630 |
Shares used in computing non−GAAP basic
earnings per share |
8,459 |
18,648 |
19,300 |
19,300 |
19,400 |
19,400 |
Shares used in computing non−GAAP diluted
earnings per share |
11,303 |
21,775 |
22,000 |
22,000 |
22,250 |
22,250 |
Non−GAAP basic earnings per share |
$0.10 |
$0.08 |
$0.16 |
$0.19 |
$0.72 |
$0.81 |
Non−GAAP diluted earnings per
share |
$0.07 |
$0.07 |
$0.14 |
$0.17 |
$0.63 |
$0.70 |
Note 1 - To supplement our unaudited condensed consolidated
financial statements presented on a basis consistent with GAAP, we
disclose non−GAAP net income and non−GAAP earnings per share. These
supplemental measures exclude stock−based compensation and one time
Exit cost net of resulting taxes. These non−GAAP measures are not
in accordance with and do not serve as an alternative for GAAP.
We believe that these non−GAAP measures have limitations in that
they do not reflect all of the amounts associated with our GAAP
results of operations. These non−GAAP measures should only be
viewed in conjunction with corresponding GAAP measures. We
compensate for the limitations of non−GAAP financial measures by
relying upon GAAP results to gain a complete picture of our
performance.
We believe that non−GAAP financial measures can provide useful
information to both management and investors by excluding certain
expenses that are not indicative of our core operating results.
Among other uses, our management uses non−GAAP measures to compare
our performance relative to forecasts and to benchmark our
performance externally against competitors.
Unaudited
Reconciliation of GAAP Net Income attributable to Common
stockholders to Adjusted EBITDA |
(Note
2) |
(in
thousands) |
|
|
|
|
|
|
|
|
Three months
ended March 31, |
Three months
ended June 30 |
Year ended
December 31, |
|
2010 |
2011 |
2011 |
2011 |
2011 |
2011 |
|
|
|
Min |
Max |
Min |
Max |
Net income attributable to Common
stockholders |
$42 |
$560 |
$1,600 |
$2,170 |
$9,100 |
$10,800 |
Accretion of Preferred of stock dividend
preference |
518 |
- |
- |
- |
- |
- |
Net income |
$560 |
$560 |
$1,600 |
$2,170 |
$9,100 |
$10,800 |
Financial income, net |
(82) |
(393) |
(450) |
(450) |
(1,000) |
(1,700) |
Taxes on income |
358 |
240 |
700 |
900 |
3,900 |
4,600 |
Depreciation and Amortization |
384 |
693 |
1,300 |
1,300 |
4,500 |
4,200 |
One time Exit Costs |
- |
- |
200 |
200 |
200 |
200 |
Stock Based Compensation |
972 |
1,239 |
1,650 |
1,590 |
5,800 |
5,700 |
Adjusted EBITDA |
$2,192 |
$2,338 |
$5,000 |
$5,710 |
$22,500 |
$23,800 |
Note 2 - Adjusted EBITDA is a metric used by management to
measure operating performance. EBITDA represents net income before
financial income, net, income tax expense depreciation and
amortization. Adjusted EBITDA represents EBITDA excluding non-cash
stock-based compensation expense one time Exit cost. We present
Adjusted EBITDA as a supplemental performance measure because we
believe it facilitates operating performance comparisons from
period to period and company to company by backing out potential
differences caused by variations in capital structures (affecting
financial income, net), tax positions (such as the impact on
periods or companies of changes in effective tax rates), the age
and book depreciation of fixed assets (affecting relative
depreciation expense), the amortization of intangible assets, the
impact of non-cash stock-based compensation expense and the impact
of one time Exit Cost. Because Adjusted EBITDA facilitates internal
comparisons of operating performance on a more consistent basis, we
also use Adjusted EBITDA in measuring our performance relative to
that of our competitors. Adjusted EBITDA is not a measurement of
our financial performance under GAAP and should not be considered
as an alternative to net income, operating income or any other
performance measures derived in accordance with GAAP or as an
alternative to cash flow from operating activities as a measure of
our profitability or liquidity. We understand that although
Adjusted EBITDA is frequently used by securities analysts, lenders
and others in their evaluation of companies, Adjusted EBITDA has
limitations as an analytical tool, and you should not consider it
in isolation, or as a substitute for analysis of our results as
reported under GAAP. Some of these limitations are:
- Adjusted EBITDA does not reflect our cash expenditures or
future requirements for capital expenditures or contractual
commitments;
- Adjusted EBITDA does not reflect changes in, or cash
requirements for, our working capital needs;
- Although depreciation is a non-cash charge, the assets being
depreciated will often have to be replaced in the future, and
Adjusted EBITDA does not reflect any cash requirements for such
replacements; and
- Other companies in our industry may calculate Adjusted EBITDA
differently than we do, limiting its usefulness as a comparative
measure.
CONTACT: Investor Contacts:
Jonathan Schaffer
The Blueshirt Group
T: 212.871.3953
ir@mediamind.com
Media Contact:
Alex Wellins
The Blueshirt Group
T: 415.217.5861
ir@mediamind.com
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